Investors should consider buying Goldman's January $120 puts, which recently traded at $8.75, wrote the newspaper. To fund the purchase, sell January $185 calls that traded at $8.75. The positions will return handsomely if politicians ramp up their criticism of the company's large bonuses and subprime mortgage sales, Barron's said.
Shares of Goldman closed at $154.12 on Friday, down $6.75.
(Reporting by Chelsea Emery; Editing by Diane Craft)